Are LBS taking advantage of Customers using Cyclescheme ?

[Hilldodger]

Come off it, I've had a store arrogantly boasting to my face that they don't need my business as C2W is so lucrative. There's been a huge boom in cycling anyway and C2W makes that even more ridiculous.

It will be quite interesting when C2W ends, seeing which bike shops suffer because of their reliance on it.

I'm just glad that we're specialists and not involved.

 

[Hilldodger]

But would you guess that maybe the boom is C2W and your business is C2W newbies who have gotten into cycling on a more serious level.

C2W is part of it but the boom in Leicester is more to do with the Ride Leicester promotions, events, cycle training Critical Mass etc. We simply can't get enough bikes for refurbishing and have a waiting list for them. As do the other two bike recycling projects here. You wouldn't believe how busy we are prior to Sky Ride for instance.

 

[darth vadar]

Some people have to find fault with everything !!!

 

[JDP]

So I walk into a major chain and see a nice Sale bike. The Shop though inform me that although it's 40% off in the sale they have to sell it at full price because Cyclescheme charge them 10% of the Sale of the bike.

I was told this when I bought my bike last year. In the end it didn't make any difference as the sale price was comparable to the CTW price so I bought it anyway.

 

[Norm]

Here's an alternative viewpoint...

Are CycleScheme taking advantage of LBSs and customers buying bikes under the Cycle To Work regulations?

 

[festival]

I'm afraid you're right.

The typical mark-up on a complete bike is about 33%. Out of that comes the cost of stocking it, the cost of putting it together, the free service after three months and the cost of dealing with the customer. Which is another way of saying that, perversely, selling complete bikes is not as profitable as selling bits of bikes, or clothes....

Take that margin down to 23% and you're looking at not a lot on a £300 bike. I realise that some bike shops pull the bike out of the box and fill the tyres, but my brother spends 60-90 minutes on setting up each bike and will then spend another hour on the three month service if the bike's been treated well. Then there's the C2W admin......

He's never bothered with the C2W scheme, because it's just not worth his while.
[/quote]

mr dellzegg. How wrong you are.

Frankly, either you have got the timings wrong or he is wasting his time building and servicing bikes.
A build from a box into a ready to ride condition otherwise known as PDI should not take more than 45 mins as a rule by a competent mechanic.
A foc ist service, is generally a tune up and adjustment job, anything else e.g. wear and tear or damage is not covered and would have to be paid for.
While its true that you couldn't run a business just selling bikes due to the margins, If what you say is accurate he is heading for trouble.
You make it sound like its all too much of an effort for him, but the well PDI 'd bike will give him a good reputation, the foc check will increase footfall and potential add on sales and as for the C2W scheme, Its a tool to be used to your advantage as well as the customers.
Yes, although it will increase sales but effect the margins, a good business will always see it as an opportunity to sell more bikes and sell more accessories.
And back to the question. Any good bike shop will find a way of using the C2W scheme to theirs and the customers advantage or they risk losing out.

 

[Downward]

Here's an alternative viewpoint...

Are CycleScheme taking advantage of LBSs and customers buying bikes under the Cycle To Work regulations?

Meh Lot of background work goes on in Order for CS to be the preffered suppliers to the Public Sector organisations.

 

[festival]

Here's an alternative viewpoint...

Are CycleScheme taking advantage of LBSs and customers buying bikes under the Cycle To Work regulations?

You are having a laugh!! , I refer you to my previous post.
Frankly you cant lose with this scheme but its fair to say there are a number of LBS who dont help themselves with the way they operate.

 

[Norm]

You are having a laugh!! , I refer you to my previous post.
Frankly you cant lose with this scheme but its fair to say there are a number of LBS who dont help themselves with the way they operate.

Is this wilful ignorance or failure to read my post?

I'll give you a clue, if it helps. CycleScheme are a commercial organisation.

 

[festival]

Is this wilful ignorance or failure to read my post?

I'll give you a clue, if it helps. CycleScheme are a commercial organisation.

Yes I know, there's no need to be rude.
But if I was unclear this is what I mean .
Its a tool to be used to increase sales and though there are rules and conditions to conform to it has obvious advantages to the customer and the retailer.
Its not rocket science, but generally if the customer wants to use the scheme and the retailer is not really bothered (as shown with some of the examples given) I would question their general approach to building a successful business and to their customers .

The customer should always gain financially , if not go elsewhere. The retailer gains a sale and potentially a customer for life.

 

[subaqua]

mr dellzegg. How wrong you are.

Frankly, either you have got the timings wrong or he is wasting his time building and servicing bikes.
A build from a box into a ready to ride condition otherwise known as PDI should not take more than 45 mins as a rule by a competent mechanic.
A foc 1st service, is generally a tune up and adjustment job, anything else e.g. wear and tear or damage is not covered and would have to be paid for.
While its true that you couldn't run a business just selling bikes due to the margins, If what you say is accurate he is heading for trouble.
You make it sound like its all too much of an effort for him, but the well PDI 'd bike will give him a good reputation, the foc check will increase footfall and potential add on sales and as for the C2W scheme, Its a tool to be used to your advantage as well as the customers.
Yes, although it will increase sales but effect the margins, a good business will always see it as an opportunity to sell more bikes and sell more accessories.
And back to the question. Any good bike shop will find a way of using the C2W scheme to theirs and the customers advantage or they risk losing out.

not quite true. any broken stuff would be warranty work which is free to the customer and the dealer then has the aggro of chasing the fee from the manufacturer.

if something has worn out in 3 months of commuting i would be questioning the quality of the part.

thankfully when the cassette/hub bearings started grinding on my bike Decathlon changed it ( with an upgrade on the wheel) no arguments. they also replaced a bent rear hanger under warranty even though they are not supposed to replace impact damaged stuff. OK this isn't cycle to work scheme bike but the principles are exactly the same.

 

[2Loose]

Here's an alternative viewpoint...

Are CycleScheme taking advantage of LBSs and customers buying bikes under the Cycle To Work regulations?

They are to an extent, in that it is their method of making money - in the same way that a pub takes advantage of it's customers in order to make a profit and maintain a business.

<br><br>Edit: a better likeness would be an insurance broker as they do not directly provide any part of the product, but take a cut.<br><br><br>Isn't that just normal capitalism in action?

 

[GrumpyGregry]

or again

"Are C2W scheme members taking advantage of the British tax payers who aren't able to benefit from the scheme because their employers choose not to join"

 

[Downward]

or again

"Are C2W scheme members taking advantage of the British tax payers who aren't able to benefit from the scheme because their employers choose not to join"

Yes I am as much as the many benefit cheats take advantage of us taxpayers. And as I pay about £350 a month in tax at least I am contributing to society

 

[Banjo]

I think your better off negotiating the best deal you can and dont bother with C2W. You wont get any discount on C2W and its a load of faffing around. If you want to spread the cost take out a low introductory offer on a credit card pay for the bike then cut it up immediately.Done that with both my recent bike purchases.

Bike shop 0% interest deals arent great either.You will get the bike at a better price if you use cash or card.